§ 5-1-253. SAME—ANNUITY SAVINGS FUND.

(a)

The Annuity Savings Fund shall be a Fund consisting of accumulated contributions credited to individual accounts of members to provide for their annuities. Upon the basis of such tables as the Board of Trustees shall adopt and regular interest, the actuary of the Retirement System shall determine for each member the proportion of earnable compensation which, when deducted from each payment of the member's prospective compensation earnable prior to the member's attainment of the member's normal service retirement age and accumulated at regular interest until the member's attainment of such age, shall be computed to provide at that time an annuity equal to and one one-hundred-twentieth of average final compensation for each year of service as a member at the member's normal service retirement age, and commencing as of July 1, 1971, with respect to each Group 3 member who is an appointed department head an additional rate of compensation computed to provide an annuity at the member's normal service retirement age equal to the difference between one-eightieth and one one-hundred-tenth of average final compensation for each year of service as a member on and after July 1, 1971, prior to the member's attaining the member's normal service retirement age. Such proportion of compensation shall be computed to remain constant. Each member who was a Group 3 member on December 31, 1960, shall either continue to make contributions at the rate applicable to the member on that date or elect, by filing a form with the Board of Trustees, on or before sixty (60) days from the date of approval and enactment, to continue at the rate applicable to the member on January 1, 1961, plus an additional rate of compensation computed to provide an annuity at the member's normal service retirement age equal to the difference between one one-hundred-twentieth and one one-hundred-thirtieth of the average annual earnable compensation during the last ten (10) years of continuous, honorable and faithful service, multiplied by the number of years of service after December 31, 1960.

(b)

The proportion so computed for a member one (1) year less than the normal service retirement age shall be applied to a member who attains a greater age before the person becomes a member of the Retirement System. The Board of Trustees shall certify to the employer and the employer shall cause to be deducted from the salary of each member on each payroll of the employer for each period the proportion of earnable compensation of each member so computed. But the employer shall not have any deduction made for annuity purposes from the compensation of a member who elects not to contribute if the member has attained the normal service retirement age and has completed thirty-five (35) years of service. In determining the amount earnable by a member in a payroll period, the Board of Trustees may consider the rate of annual compensation payable to such member on the first day of the payroll period as continuing throughout such payroll period, and it may omit deduction from compensation for any period less than a full payroll period if an employee was not a member on the first day of the payroll period, and to facilitate the making of deductions it may modify the deduction required of any member by such an amount as shall not exceed one-tenth of one percent of the annual compensation upon the basis of which such deduction is to be made.

(c)

Should a member's salary be reduced due to an injury which is compensated under worker's compensation law, such reduction in salary shall have no effect on the calculation of member contributions to the Annuity Savings Fund for the purpose of benefit allowances, and said member shall be liable for annuity savings contributions at the member's pre-injury salary level.

(d)

Notwithstanding subsection (c) of this section, no deduction shall be made from any member's compensation with respect to which the employer's contributions are in default.

(e)

Subject to the approval of the Board of Trustees, in addition to the contributions deducted from compensation as provided in this section, any member may redeposit in the Annuity Savings Fund by a single payment or by an increased rate of contribution an amount equal to the total amount which the member previously withdrew therefrom as provided in this subtitle or any part thereof, or any member may deposit therein by a single payment or by an increased rate of contribution an amount computed to be sufficient to purchase an additional annuity which, together with the member's prospective retirement allowance, will provide for the member a total retirement allowance not in excess of one-half of the member's average final compensation at the normal service retirement age. Such additional amounts so deposited shall receive interest as the Board shall elect to credit thereon, not in excess of interest at the regular rate, and such amounts together with interest thereon shall become a part of the member's accumulated contributions except in the case of service or ordinary disability retirement when they shall be treated as excess contributions returnable to the member in cash or as an annuity of equivalent actuarial value.

(f)

The accumulated contributions of a member withdrawn by the member or paid to the member's estate or to the member's designated beneficiary in event of the member's death, as provided in this title, shall be paid from the Annuity Savings Fund. Upon the retirement of a member, the member's accumulated contributions shall be transferred from the Annuity Savings Fund to the Pension Accumulation Fund.

(g)

(1)

After October 1, 1989, the county shall pick up the member contributions for service rendered by the member from October 1, 1989, in accordance with Section 414(h)(2) of the Internal Revenue Code.

(2)

The contributions picked up under paragraph (1) of this subsection shall:

(i)

Be treated as employer contributions in determining tax treatment under Section 414(h)(2) of the Internal Revenue Code, as amended;

(ii)

Be implemented by a reduction, equal to the amount of the pickup, of the compensation of each member required to make contributions to the annuity savings fund under this subsection and may not be included as gross income of the member until the pickup amounts are distributed or made available to the member;

(iii)

Be paid by the county from the same source of funds used in paying compensation to the member;

(iv)

Be treated for all purposes of this title in the same manner and to the same extent as contributions made by a member prior to October 1, 1989; and

(v)

Not be accessible to an employee and an employee will not have the option of receiving the pickup contribution in cash instead of having the contribution paid to the retirement plan.

(1988 Code, § 23-91) (Bill No. 131-93, § 1, 12-18-1993; Bill No. 32-03, § 1, 7-1-2004; Bill No. 30-10, § 2, 7-1-2010)